• Can Wal-Mart replicate its domestic model in its original form in China? Why? Why not?
• What are some specific Chinese market threats and factors that Wal-Mart must consider to implement to gain and maintain a sustainable strategic advantage?
• Who are some of Wal-Mart's strongest international competitors? How do they distinguish themselves from Wal-Mart? Please explain.
Introduction: Hello, I am going to follow my normal process and attempt to provide you with a step-by-step approach to providing you with the guidance you need to provide a satisfactory response to your professor. I will provide you with some good reference material, but please remember, it is your responsibility to ensure that any references you use in your final response to your professor must be formatted per the standards set by your professor.
1. Your question begins with a fundamental question that any U.S. based multinational corporation must ask, "Can Wal-Mart replicate its domestic model in its original form in China? Why? Why not"? At this point, I think it is important to understand Wal-Mart's domestic model. In my view, there are five critical elements in the success of Wal-Mart in the domestic marketplace.
A. As the article by Farhoomand (2006) clearly details, Wal-Mart's initial success came though the company's efforts to serve rural under-served communities. Wal-Mart created consumer loyalty by bringing discount prices to rural markets that were previously only available in large cities (Farhoomand, 2006).
B. As Wal-Mart grew, the company could press suppliers to find way to reduce their production costs, thus driving down the cost consumers would pay for the goods in each store (Farhoomand, 2006).
C. Early on, Sam Walton maintained control of the distribution of goods between distribution centers and each individual store (Farhoomand, 2006).
D. Company leadership that followed Sam Walton had the vision to see that advanced supply chain technology would create the ability to streamline distribution, thus creating great savings to pass on to consumers (Farhoomand, 2006).
E. Wal-Mart created a corporate culture of outstanding customer service that many of their competitors have been unable to match (Farhoomand, 2006).
2. One important human capability that is important to this discussion is the ability of the human mind to find ways to overcome obstacles (Fallon, 2014). Globalization has created business ...
This response provides the student with some good background into the business environment that Wal-Mart faces in the Chinese marketplace. Wal-Mart faces a host of business challenges related to a large populace, and a large geographic area. Added to this complexity, the wide range of local governments and cultural differences throughout China make business expansion very challenging. The response provided to the student provides guidance in each of these important issues.